Lending Club has revised its loan sales data for the last week of May after discovering that the numbers included loans that it actually bought itself.
After initially reporting that it sold $65 million of loans for the week ending May 31, Lending Club said in a regulatory filing late Wednesday that the total was actually $21 million, in line with prior weeks' sales figures. The Wall Street Journal, which
The company also revised downward the amount of loans offered for sale, from $66.6 million to $30.3 million.
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With its very survival at stake, the San Francisco-based marketplace lender is balancing key priorities that are sometimes in conflict with each other.
June 8 -
Following the scandal-tinged departure of CEO Renaud Laplanche, the company is contemplating drastic steps to restore the confidence of loan buyers. Scenarios that would have been far-fetched a short time ago such as diluting shareholders and funding loans off its own balance sheet are now under consideration.
May 17 -
Prosper Marketplace's decision to eliminate 22% of its workforce is more evidence that the bloom is off the rose for a sector that had been enjoying astronomical growth.
May 4
The revision was the latest in a series of setbacks for country's largest and best-known online lender.
In early May, its founder Renaud Laplanche resigned amid allegations that certain loan data had been falsified. Since then, the company has reported that some of its key investors had stopped buying its loans, forcing Lending Club, which relies on loan sales to fund future loans, to keep more loans on its balance sheet.
The Journal has also reported that Lending Club is in talks with several major hedge funds about providing funding for its loans. They include Och-Ziff Capital Management Group LLC, Soros Fund Management LLC and Third Point LLC.
Lending Club's shares were trading at $4.24 late Friday, down 5.2% from Thursday's close. Its shares have declined by more than 40% since Laplanche stepped down on May 9.